Think the best time to start a business is in a booming economy? Maybe. But some of the biggest business success stories in recent decades actually came from a good idea hatched during a recession.
Consider these names: CNN, Uber, Airbnb and Square. There are many more.
The effects of the COVID-19 pandemic are forcing existing businesses to reinvent themselves, and some of today’s most significant business obstacles will spark new startups offering innovative solutions.
With the pandemic quickly shifting consumer behavior, more than $3 trillion is expected to be lost or moved to the businesses best prepared to exploit the possibilities, according to a November 2020 Accenture analysis.
Here are ways to formulate and recognize business opportunities during tough times.
1. Adapt rapidly to a changing market
During the Great Recession in 2008, Jonathan Slain was an owner of personal training and fitness studios. That’s a personal expense many people will eliminate when money is tight.
“So I spent several months of the recession huddled under my desk, trying to figure out what to do,” Slain says. He needed money for operations and payroll and eventually borrowed money from his mother-in-law to keep his business afloat.
Every two weeks, he had to go back to her to cover payroll; there were “10 excruciating phone calls,” he says, and he ultimately borrowed a total of $250,000. Eventually, he was able to pay her back.
Now a business consultant in Ohio, Slain co-wrote the book “Rock the Recession: How Successful Leaders Prepare for, Thrive During, and Create Wealth After Downturns.” He says the lessons he learned from failure, combined with insight gained from his friend and co-author, Paul Belair, guide a profitable recession strategy.
As he says in the book, “Learn from my mistakes. Don’t be like me. Be like Paul.”
Belair owned a heating and air conditioning company during the same recession.
Knowing that customers would buy fewer new units but opt for service instead, Belair and his management team flipped the company’s focus from 80% sales to 80% service.
The nimble pivot allowed Belair and his investors to…. (Read the Full Article from Tucson.com)